-The Rightward Shift of the Aggregate Demand (AD)curve,from AD1 to AD2,shown

question 39

Multiple Choice

-The rightward shift of the aggregate demand (AD) curve,from AD1 to AD2,shown in the diagram above may be caused by a(n)

• A) increase in consumption induced by an increase in national income.
• B) increase in consumption induced by a fall in the price level.
• C) increase in consumption induced by a rise in real wealth due to a fall in the price level.
• D) increase in autonomous consumption.
• E) decrease in private investment induced by a fall in the interest rate due to a fall in the price level.

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Definitions:

Environmental Legislation

Laws and regulations designed to protect the natural environment against pollution and harm, often by regulating emissions and industrial processes.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Primary School

An educational institution for children, typically aged five to eleven, providing the initial stage of compulsory education in many countries.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.